PSS business model conceptualization and application

The discussion about business models has gained considerable attention in the last decade. Business
model frameworks have been developed in the literature as management methods helping companies
to comprehend and analyse their current business logic and guide the deployment of new strategies.
In response to calls for a deeper understanding of the application of a business model approach to
product-service systems (PSS), this study develops a two-level hierarchical framework that (i) includes a
set of components with pertinent, second-order variables to take into account when undergoing the shift
from products to solutions; (ii) supports industrial companies, especially SMEs, in designing their future
business model and in consistently planning the actions needed to implement it. The framework was
applied and refined within real-life settings. The application to KINE – a robot solutions supplier – shows
how key challenges faced by servitization firms may be thoroughly addressed through the adoption of a
business model perspective.